I agree with the analysis that no single factor can be blamed for the global food crisis. Rather, it is an unlucky confluence of events over the past several years that have contributed to soaring prices. Here are some factors to consider:
1. Trade Restrictions - Major exporting countries have introduced or increased export taxes, bans, and other restrictions on agricultural products to keep down domestic prices. The export restrictions further strain already tihgt supplies and put added pressure on prices.
2. Increased Demand in Asia - Economic development and income growth in emerging countries - especially India and China - are changing what people eat. Diets are moving away from starchy foods toward more meat and dairy. More grain is needed to feed livestock, which means there is less for human food.
3. Weather - Heat waves, droughts, and excessive rain in big grain-producing countries hae taken a toll on crops in the past several years.
4. Biofuels - The push to produce biofuels has increased demand for corn.
5. Fuel Prices - Rising fuel prices makes is costlier to produce and transport agricultural commodities.
The New Economics of Hunger
by Anthony Faiola
http://www.washingtonpost.com/wp-dyn/content/story/2008/04/26/ST2008042602333.html?hpid=topnews
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